Pershing Square Moves to Dismiss Shareholder Lawsuit Over Howard Hughes Stake Increase

Pershing Square sought to toss a shareholder lawsuit accusing founder Bill Ackman of bullying Howard Hughes directors into a deal that increased the investment firm’s stake at an unfairly low price. ” Pershing Square filed the motion to dismiss the case, which centers on the terms of the transaction with Howard Hughes.

That transaction increased Pershing Square’s stake at an unfairly low price, according to the plaintiffs. @business reported that Pershing Square sought to toss what it called a “facially defective” shareholder lawsuit. The suit targets the conduct of Ackman and the directors of Howard Hughes in approving the stake increase.

The motion to dismiss argues the claims lack legal merit on their face. No further details on the timing of the underlying deal or the specific relief sought by shareholders were included in the filing.